Month: February 2017

How do I modify my existing KYC details?

You need to fill and submit a ‘change in KYC’ form along with a relevant proof

If you need to change your KYC details, you need to fill a ‘change in KYC’ form. You also need to submit a proof for the change and then submit the form and the proof with any fund house where you have invested or with your registrar and transfer agent’s office, provided it is authorized to accept KYC applications.

You can either contact your mutual fund house to do it or you can do it through registrar and tranfser agents like CAMS and Karvy.

IDFC Tax Advantage scheme seeks to build a diversified portfolio comprising of stocks of companies with strong fundamentals that are available at reasonable valuations. The scheme can be fully into equities (and equity related securities) and upto 20% in debt & money market instruments.

The IDFC Tax Advantage Fund which has earned its stripes by beating its benchmark every year except the first one (2009). This performance has earned it a four-star rating for much of the last three years.

The IDFC Tax Advantage Fund has a higher-than-category allocation to both mid-cap and small-cap stocks. Mid caps have made up anywhere between 30 and 45 per cent of the portfolio. Large caps have accounted for 40-50 per cent. Small caps have made up 20 odd per cent. The fund is managed on the basis of a growth-at-a-reasonable-price philosophy. It does take both cash and debt calls on occasion. The fund believes in identifying companies based on a deep understanding of the industry-growth potential and interaction with managements.

The IDFC Tax Advantage Fund is yet to be tested in a severe bear market, as it was launched after 2008. Its record in 2011 showed ability to contain downside. The fund has beaten its benchmark by sizeable margins of 5-6 percentage points over three and five years, though one-year returns show it lagging behind the category. The fund hasn’t been a huge category outperformer but a return of 20 per cent (since launch) is not to be scoffed at. The higher mid- and small-cap tilt, however, may peg up volatility if the latter’s high valuations prompt a correction.

Investors can take smaller exposures to this fund until a longer track record is at hand.

How can I get my KYC done online?

eKYC can be Aadhar-based or PAN-based through certain transfer agents & fund houses

Know Your Customer (KYC) compliance is a prerequisite for investments in mutual funds. Investors are required to fulfil KYC requirements with a KYC registration agency once and this is applicable to all investments across funds.

Nowadays, it is possible to get your KYC done online in the following ways:

Aadhar-based e-KYC:

You need to provide your Aadhar number, the registered mobile number (linked with the aadhar card) and the OTP (one time password) which is sent to this registered mobile number. You also need to upload a scanned self-attested copy of aadhar card. Which this method is completely electronic, it comes with certain restrictions. It is available only for investments where the mode of holding is single. Further, a person KYCed through this method and can invest up to a maximum of Rs 50,000 in one fund house in a financial year. For more details and to get your KYC done, visit this link

PAN-based e-KYC:

Some fund houses also offer the facility of getting your KYC done electronically based on your PAN card. You need to fill the relevant form online, take a print out and upload its scanned copy with your photograph and signature, along with other relevant documents. Subsequently, your in-person verification is done through a webcam or your smartphone, without you having to go anywhere.

The main advantage of this method is that the restrictions, as applicable on Aadhar-based KYC do not apply here. Birla Sun Life Mutual Fund is one of the few AMCs that offer both these methods of KYC on its website.

Even as the BNP PARIBAS MIDCAP Fund has seen its return profile improve in recent years, it’s long term track record is a bit patchy because of under performance its initial years. The fund seeks to invest in future leaders, and takes a more aggressive approach compared to many of its midcap peers, with a higher tilt towards smaller-sized companies. This lends it a higher risk profile, which it strives to contain by taking a limited exposure to its top stock picks and investing across companies within its chosen sectors. The chosen stocks are mostly sector leaders or challengers to leaders in sec tors with sound growth prospects. While the fund has delivered decent mid-tier performance in recent years, its new fund management team will need time to prove execution capabilities.